Company Overview and Strategic Positioning - Tianqi Lithium is a leading lithium-focused new energy materials company with strategic layouts in China, Australia, and Chile, covering key stages of the lithium industry chain including resource development, processing, and sales[3] - The company is listed on both the Shenzhen Stock Exchange (002466.SZ) and the Hong Kong Stock Exchange (9696.HK)[3] - Tianqi Lithium has a vertically integrated global supply chain and partners with international clients to support the long-term sustainable development of lithium-ion battery technology for electric vehicles and energy storage[3] - The company has undergone significant milestones over the past 30 years, including corporate restructuring, capital expansion, global M&A, and dual listings[3] - Tianqi Lithium is committed to international standards and aims to be a global influencer in the energy transition, focusing on ESG and sustainable development[3] - The company's headquarters are located in Chengdu, Sichuan Province, China, with a primary business address in Hong Kong[5] - Tianqi Lithium's A-shares are traded on the Shenzhen Stock Exchange under the ticker 002466, while its H-shares are traded on the Hong Kong Stock Exchange under the ticker 9696[5] - The company's financial reports are prepared in both Chinese and English, with the Chinese version taking precedence in case of discrepancies, except for the independent auditor's report and consolidated financial statements, which follow the English version[3] - Key subsidiaries include Chengdu Tianqi Lithium Co., Ltd. and Chongqing Tianqi Lithium Co., Ltd., with strategic investments in Chile and Australia[6] - The company's legal advisors include Paul Hastings for Hong Kong law, and its auditors are KPMG for both international and domestic financial reporting[5] Financial Performance - Revenue for the year ended December 31, 2022, reached RMB 40,168,923 thousand, a 428.69% increase compared to the previous year[11] - Gross profit surged to RMB 34,154,295 thousand, marking a 628.57% year-on-year growth[11] - Net profit attributable to equity shareholders of the company was RMB 23,944,590 thousand, up 556.16% from the previous year[11] - Earnings per share increased to RMB 15.41, a 523.89% rise compared to 2021[11] - Lithium concentrate sales contributed RMB 15,414,461 thousand, accounting for 38.37% of total revenue, with a 484.39% year-on-year increase[12] - Lithium compounds and derivatives sales amounted to RMB 24,754,462 thousand, representing 61.63% of total revenue, up 399.06% year-on-year[12] - Revenue from Mainland China was RMB 33,612,173 thousand, making up 83.68% of total revenue, with a 410.91% increase compared to 2021[12] - Overseas revenue reached RMB 6,556,750 thousand, accounting for 16.32% of total revenue, a 543.46% year-on-year growth[12] - Lithium concentrate gross profit increased to RMB 12,937,296 thousand in 2022, with a gross margin of 83.93%, up from RMB 1,635,630 thousand and 62.01% in 2021[14] - Lithium compounds and derivatives gross profit rose to RMB 21,216,999 thousand in 2022, with a gross margin of 85.71%, compared to RMB 3,052,254 thousand and 61.54% in 2021[14] - Total gross profit reached RMB 34,154,295 thousand in 2022, with a gross margin of 85.03%, up from RMB 4,687,884 thousand and 61.70% in 2021[14] - Revenue for 2022 was RMB 40,168,923 thousand, a 428.69% increase year-over-year[17] - Net profit attributable to equity shareholders surged to RMB 23,944,590 thousand in 2022, a 556.16% increase compared to the previous year[17] - The company's debt-to-asset ratio decreased from 56.78% in 2021 to 24.53% in 2022[17] - The company announced a profit distribution plan, proposing a cash dividend of RMB 30 per 10 shares (tax inclusive)[17] - Revenue for the group in 2022 was RMB 40,168,923 thousand, a 428.69% increase compared to RMB 7,597,863 thousand in 2021[65] - Gross profit for the group in 2022 was RMB 34,154,295 thousand, a 628.57% increase compared to RMB 4,687,884 thousand in 2021[65] - Net profit attributable to equity shareholders in 2022 was RMB 23,944,590 thousand, a 556.16% increase compared to RMB 3,649,185 thousand in 2021[65] - Revenue from lithium concentrate sales in 2022 was RMB 15,414,461 thousand, accounting for 38.37% of total revenue, a 484.39% increase compared to 2021[68] - Revenue from lithium compounds and derivatives in 2022 was RMB 24,754,462 thousand, accounting for 61.63% of total revenue, a 399.06% increase compared to 2021[68] - Gross margin for the group in 2022 was 85.03%, an increase of 23.33 percentage points compared to 61.70% in 2021[70] - Sales to the top 5 customers in 2022 amounted to RMB 24,303,919 thousand, accounting for 60.50% of total sales, compared to 49.77% in 2021[73] - R&D expenditure in 2022 was RMB 26,703 thousand, a 41.84% increase compared to RMB 18,826 thousand in 2021, accounting for 0.07% of total revenue[76] - The group's other net income in 2022 was RMB 1,286,972 thousand, a significant increase compared to RMB 478,593 thousand in 2021, mainly due to gains from deemed disposals and partial disposals of associates[74] - Operating cash flow increased by 809.02% to RMB 2,232,917 thousand in 2022, driven by higher cash receipts from lithium product sales[77] - Net cash flow from investing activities surged by 1,241.21% to RMB 65,195 thousand, primarily due to increased dividends received from SQM[77] - Net cash flow from financing activities rose by 820.91% to RMB 1,147,848 thousand, mainly due to increased repayment of syndicated loans and dividends to minority shareholders, partially offset by H-share issuance proceeds[77] - Cash and cash equivalents increased by 926.69% to RMB 10,470,967 thousand, reflecting the overall changes in funding activities[77] - Non-current assets increased by RMB 7,249,963 thousand to RMB 46,597,759 thousand, driven by higher equity in associates, property, plant, and equipment, and financial assets at fair value[78] - Current assets surged by RMB 19,507,746 thousand to RMB 25,960,258 thousand, mainly due to increased cash, trade receivables, and inventory from higher revenue[78] - Current liabilities decreased by RMB 5,038,308 thousand to RMB 7,555,107 thousand, primarily due to repayment of bank loans and other borrowings[78] - The company's equity in SQM, an associate, stood at 22.16% with a carrying value of RMB 26,564,160 thousand[79] - Capital expenditure increased by RMB 715,121 thousand to RMB 1,716,033 thousand, primarily for property, land, equipment, and intangible assets[82] - The capital-to-debt ratio decreased by 94.30 percentage points to 15.90% as of December 31, 2022[85] - Total issued share capital as of December 31, 2022, is 1,641,221,583 shares, with A-shares accounting for 90% (1,477,099,383 shares) and H-shares accounting for 10% (164,122,200 shares)[90] - The board proposed a final cash dividend of RMB 30 per 10 shares (tax inclusive) based on the total share capital as of the record date, excluding shares held in the company's repurchase account[91] - The company issued H-shares and listed on the Hong Kong Stock Exchange, with a total of 164,122,200 H-shares issued at a price of HKD 82 per share, raising funds for debt repayment, capacity expansion, and working capital[92][93] - Post-H-share issuance, the company's share structure remains 90% A-shares (1,477,099,383 shares) and 10% H-shares (164,122,200 shares)[94] - The company invested up to USD 100 million as a cornerstone investor in CALB's Hong Kong IPO, acquiring 20,217,200 shares, representing 7.47% of the issued shares and 1.12% of the post-issuance share capital[96] - The company holds 27,740,256 shares in SES AI Corporation, which completed a business merger and began trading on the NYSE under the ticker "SES" and "SES WS"[97] - The first phase of the "24,000 tons per year battery-grade lithium hydroxide monohydrate project" in Australia has completed all process load debugging and entered trial production at the end of 2021, with the first batch of 10 tons of lithium hydroxide products meeting battery-grade standards as of May 19, 2022[98] - The total investment for the Australian lithium hydroxide project was adjusted to AUD 4.7 billion (approximately RMB 3.712 billion) from the original AUD 398 million[98] - The Talison Lithium expansion project in Australia has seen its budget increased to AUD 632 million from the original AUD 516 million, with the trial production delayed to 2025[99] - The Talison Lithium expansion project is expected to increase chemical-grade lithium concentrate production capacity to 2 million tons per year upon completion[99] - The Anju project, a 20,000 tons per year battery-grade lithium carbonate factory in Sichuan, has had its budget increased to RMB 1.477 billion and is expected to be completed in the second half of 2023[100][101] - Tianqi Lithium's subsidiary, Tianqi Chuangli, and Beijing Weilan established a joint venture, Tianqi Weilan Solid Lithium New Materials (Shenzhen) Co., Ltd., with Tianqi Chuangli contributing RMB 10.2 million for a 51% stake[102] - Successfully appointed three directors to SQM and sold part of the company's Class B shares in SQM, resulting in the company holding 74.849 million Class B shares and 62.556568 million Class A shares, with a total shareholding ratio of approximately 22.16%[103] - Completed the delivery of 4.526828 million Class B shares of SQM under the collar option contract, with the remaining 74.849 million Class B shares still held by the company[103] - Settled all litigation and arbitration cases with MSP, including the payment of AUD 38.8815 million in principal and interest, and received formal documents from the Western Australia Supreme Court and arbitration tribunal confirming the termination of all proceedings[104] - Issued H shares totaling 164,122,200 shares at a price of HKD 82 per share, raising net proceeds of approximately HKD 13.062 billion, with HKD 8.865 billion used to repay SQM debt and HKD 1.721 billion used to repay domestic bank loans[106][107] - Allocated HKD 1.17 billion for the construction of the Anju Plant Phase I, with HKD 363.71 million used and HKD 806.29 million remaining as of December 31, 2022[107] - Revenue for 2022 reached RMB 40,168,923 thousand, a significant increase from RMB 7,597,863 thousand in 2021[152] - Gross profit for 2022 was RMB 34,154,295 thousand, compared to RMB 4,687,884 thousand in 2021[152] - Net profit attributable to equity shareholders of the company for 2022 was RMB 23,944,590 thousand, a substantial improvement from RMB 3,649,185 thousand in 2021[152] - Total assets as of December 31, 2022, were RMB 72,558,017 thousand, up from RMB 45,800,308 thousand in 2021[152] - Total liabilities decreased to RMB 17,799,775 thousand in 2022 from RMB 26,007,356 thousand in 2021[152] - Sales to the top five customers accounted for 60.50% of total sales, with the largest customer contributing 32.26%[146] - Purchases from the top five suppliers represented 21.34% of total purchases, with the largest supplier accounting for 6.38%[146] - Customer satisfaction across domestic production bases exceeded 95% during the reporting period[145] - The company donated RMB 10 million in cash and supplies for earthquake relief in Sichuan Province[147] - The company maintained strong relationships with major battery and electric vehicle equipment manufacturers, solidifying its position in the global lithium industry[145] - The company has established a comprehensive compensation and benefits system, including fixed salary, short-term incentives, long-term incentives, and employee benefits, to attract and retain skilled and experienced personnel[158] - The company has formed a Remuneration and Appraisal Committee to review the compensation policies and structures for directors and senior management based on the company's operating performance, individual performance, and market practices[158] - The company has disclosed the details of the remuneration for directors, supervisors, and the five highest-paid individuals in the notes to the consolidated financial statements[158] - The company has formulated the "Directors and Supervisors Remuneration Scheme" and the "Senior Management Remuneration Scheme", which were published on the Shenzhen Stock Exchange website on April 30, 2022[159] - The remuneration for directors is determined based on their positions, job nature, working hours, responsibilities, risks, pressures, and the salary levels of similar positions in comparable listed companies[159] - As of December 31, 2022, the company's directors, supervisors, and senior executives held interests in the company's shares, related shares, and debentures as disclosed in the annual report[160] - Jiang Weiping, the company's controlling shareholder, holds 416,316,432 A-shares, representing 28.18% of the company's A-shares and 25.37% of the company's total shares[161][162] - Tianqi Group, controlled by Jiang Weiping, pledged 4,500,000 A-shares to two Chinese financial institutions as of December 31, 2022[162] - As of December 31, 2022, the company's major shareholders, excluding directors, supervisors, and senior executives, held interests in the company's shares as disclosed in the annual report[165] - Morgan Stanley Investments (UK) holds 17,245,690 H-shares, representing 10.50% of the company's H-shares and 1.05% of the company's total shares[166] - Morgan Stanley International Limited holds 17,245,690 H shares (long position), representing 10.50% of the company's H shares and 1.05% of the total shares[167] - LG Chem, Ltd. holds 14,360,200 H shares (long position), representing 8.75% of the company's H shares and 0.88% of the total shares[167] - China International Capital Corporation Hong Kong Securities Limited holds 9,354,916 H shares (long position), representing 5.70% of the company's H shares and 0.57% of the total shares[167] - The company issued 164,122,200 H shares at a price of HKD 82 per share, raising a net amount of approximately HKD 13.062 billion[173] - The net proceeds from the H share issuance were used as follows: HKD 8,865 million to repay SQM debt, HKD 1,170 million to repay domestic bank loans, and HKD 1,306 million for working capital and general corporate purposes[174] - As of December 31, 2022, the company had used HKD 12,255.71 million of the net proceeds, with a remaining balance of HKD 806.29 million[174] - The company implemented an employee stock ownership plan in 2022 to enhance corporate governance and incentivize key personnel[175] - Tianqi Group, controlled by Mr. Jiang Weiping and Ms. Zhang Jing, holds 416,316,432 A shares, representing a significant portion of the company's equity[168] - As of December 31, 2022, Tianqi Group had pledged 4,500,000 A shares to financial institutions[168] - The company confirmed that its controlling shareholders complied with non-compete commitments during the reporting period[171] - The employee stock ownership plan has a maximum limit of RMB 200 million, corresponding to 1,780,366 shares, representing 0.11% of the company's total shares[176] - The average repurchase price of the shares was RMB 112.33 per share, with a total payment of RMB 199.985 million[176] - The total number of shares held by all employee stock ownership plans will not exceed 10% of the company's total share capital, and no single employee will hold more than 1%[176] - The actual number of shares granted under the plan was 1,062,400 shares, representing 0.0647% of the company's total issued share capital[179] - The top five highest-paid executives (including directors) were granted a total of 45,500 shares, with a fair value of RMB 3.75375 million[180] - The company's 2022 employee stock ownership plan holds 1,312,400 shares, accounting for 0.08% of the total share capital, with 1,062,400 shares already granted[182] - The plan has a lock-up period of 36 months, starting from December 21, 2022, and will be unlocked in one go after the lock-up period ends[184] - The company aims to achieve a total lithium chemical product capacity of 90,000 tons of lithium carbonate equivalent by the end of 2024[185] - The company repurchased 1,780,366 shares at an average price of RMB 112.33 per share, totaling RMB 199.985 million[187
天齐锂业(09696) - 2022 - 年度财报